Hi Aggie,
You pose some interesting questions and I think many folks grapple with the same questions. Full disclosure, I worked in Financial Services for 37 years at a full service brokerage firm but in a non Sales capacity. I did have a boatload of security licenses though and have friends who were in research, investment banking, retirement etc. so I was able to pick their brains and had access to a lot of information.
The internet and discount brokerage really changed the investment landscape, but the landscape, from a product and regulatory landscape continue to evolve. One of my friends that I worked with started a DGI plan there over 30 years ago so I had exposure to her methodology and was able to benefit immensely from it.
I have also met a lot of investment brokers, CFP's, portfolio managers and others and for the most part they are hard-working and serious about doing a good job for their clients. Since a lot of the model is changing from commission based to fee based, theoretically their interests are better aligned with the clients.
For the most part, I have done all my investment decisions on my own but have become a student of the topic and also consider it a hobby. As you said though, I might need some assistance with estate planning and a better methodology of managing RMDs when I have to start making them from my IRA.
Over my career, I have come across many people who do a great job completely on their own. However, I think the vast majority need some degree of help. Most of the folks who come to a site and thread like this are obviously serious about the topic and typically put in a lot of homework and effort. The problem is that we know what we know and don't know what we don't know and you asking these type of questions is a healthy exercise.
Regardless of the path that anyone follows, they need to understand their investments and have an overall plan. If some one uses a CFP or Investment Broker, they should insist on understanding the fundamentals of what they are doing. You also have to ask yourself, "How much time do I intend to put into this? If you do it yourself, you have to put in the time and effort. Some folks want to do that but others frankly either are not very good at it or willingly to put in the time.
The other aspect is that I see folks who have a plan but panic in major market down turns and renege on the path they set out. I have seen people bail at the bottom and then watch the security recover and hit new highs. Sometimes a professional will keep you on course. |
